Agri-tech startup GS Farm Taaza Produce Ltd has raised $8 million (Rs 52 crore) in the first round of funding to invest in scaling its technology platform.
The funding was led by Hong Kong-based Epsilon Venture Partners and Tara India Fund IV, managed by IL&FS Investment Managers Ltd, the company said in a statement.
The B2B enterprise in the fresh produce of fruits and vegetables was founded by Kumar Ramachandran in August 2015.
Ramachandran, an alumnus of the University of South Florida, was associated with companies such as Vignani Technologies, Applied Materials India and Hitachi Data Systems in the past.
The Bangalore-based company had received $1 million in its seed round from angel investors such as former iGate CEO Phaneesh Murthy and former Asia-Pacific chief of Intel Capital Sudheer Kuppam.
The company will use the funds to scale the business and strengthen its tech infrastructure by leveraging machine learning, artificial intelligence and data analytics, it said.
Farm Taaza currently operates in Bengaluru, Chennai, Hyderabad and Ooty.
The startup currently receives more than 200 orders a day from suppliers and clients, which amounts to around 20 tonnes of produce daily.
Farm Taaza works with over 1,400 farmers to source and supply nearly 150 varieties of fruits and vegetables to clients.
It services a long list hotels, hospitals as well as supermarkets, including Big Bazaar, HyperCity, Manipal Hospitals and Apollo Hospitals, among others.
Around 60% of the startup’s net revenue currently comes from the neighborhood grocery stores, with the rest contributed by bigger retail outlets.